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Goldwater Institute sues Missoula over data centre zoning, citing Montana's Right to Compute Act
Nov 10, 2026
The suit on behalf of small AI and cloud provider CubCloud AI says Missoula's October ordinance confines server facilities to a zoning class that does not exist in the city.
The Goldwater Institute and the Frontier Institute sued the City of Missoula over zoning restrictions affecting CubCloud AI, the Goldwater Institute said in an announcement. The lawsuit was filed in the Fourth Judicial District Court in Missoula County.
The Missoula City Council approved the ordinance by 10 votes to 2 on October 5. The lawsuit argues that the rules prevent CubCloud AI from expanding anywhere in the city by restricting server facilities to a zoning classification that does not exist within city limits.
CubCloud AI provides AI and cloud computing infrastructure to local businesses. Its existing building covers less than 4,000 square feet, with computing equipment occupying less than 850 square feet. The company invested nearly $2 million in the site and plans to build a small warehouse on the property for more computing equipment.
The lawsuit alleges that the ordinance violates Montana's Right to Compute Act. The law requires government restrictions on private computational resources to be demonstrably necessary and narrowly tailored to serve a compelling government interest.
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